Q1 2024 Marketaxess Holdings Inc Earnings Call Transcript
Key Points
- MarketAxess Holdings Inc (MKTX) reported a 4% total revenue growth, benefiting from the Pragma acquisition with earnings per share of $1.92.
- Record levels of commission revenue were achieved across several credit product areas, including U.S. high-grade, emerging markets, Eurobonds, and municipal bonds.
- Non-U.S. credit revenue reached a record $92 million in the quarter, representing 44% of total revenue, highlighting successful geographic and product diversification.
- The company continues to maintain disciplined expense management, with total operating expenses increasing only 9%, including the impact of the Pragma acquisition.
- MarketAxess Holdings Inc (MKTX) saw an expansion of its global client franchise, with a record 2,118 active client firms trading on its platforms in the first quarter.
- MarketAxess Holdings Inc (MKTX) expressed concerns over recent trends in its estimated market share in U.S. credit, acknowledging the need for improvement.
- Historically low levels of credit spread volatility have impacted ETF market participants and hedge funds, decreasing activity in the U.S. high-yield business.
- The company's high-yield market share has shown volatility and a need for recovery to more normal levels of spread volatility.
- Open Trading's share of total credit volume decreased to 34% from 37% in the previous year, indicating a reduction in secondary liquidity market share.
- Despite overall growth, there was a noted decrease in estimated market share in high yield due to lower credit spread volatility, which also led to a reduction in total credit fee capture.
Ladies and gentlemen, thank you for standing by. Welcome to the MarketAxess First Quarter 2024 Earnings Conference Call.
(Operator Instructions) As a reminder, this conference call is being recorded on May 7, 2024. I would now like to turn the call over to Steve Davidson, Head of Investor Relations at MarketAxess. Please go ahead, sir.
Good morning, and welcome to the MarketAxess First Quarter 2024 Earnings Conference Call. For the call, Chris Concannon, Chief Executive Officer, will provide you with a strategic update on the company. Rich Schiffman, Global Head of Trading Solutions, will update you on the performance of our markets this quarter, and then I will review the financial results.
Before I turn the call over to Chris, let me remind you that today's call may include forward-looking statements. These statements represent the company's belief regarding future events that, by their nature, are uncertain. The company's actual results and financial condition may differ
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